Vijay Verma Versus State & Anr

2015 (3) TMI 1181 - DELHI HIGH COURT

Misappropriation of government money - Seeking direction to release on bail in the event of arrest - Neither paid dues towards service tax nor provided requisite details to the department - Appellant did not joined the investigation also - Respondent submitted that the application is pre-mature as even no order for arrest of the applicant has been passed by the competent authority and if that being so, there is no apprehension of arrest of the applicant.

application has been filed by the applicant inter alia on the allegation that he is one of the directors of the company - M/s Sun Nirman Infrastructure Pvt. Ltd. The company was incorporated in the year 2007. However, the applicant was not involved in its incorporation and was not connected with the said company in any manner whatsoever. The applicant purchased certain shareholding in the company and became one of the directors of the company since December, 2011/ January, 2012. It was only afte .....

itted all the documents. His statement was duly recorded and it was informed that there are some alleged outstanding dues towards the service tax to the tune of ₹ 2.54 crores. Pursuant to another notice dated 26.11.2013, the applicant supplied most of the information including all the documents. In the month from March to June, 2013, the company paid a total sum of ₹ 3 crores towards service tax dues to the department. Further, from September, 2013, approximately a sum of ₹ 87 .....

ed the AR of the applicant that they would initiate action to arrest the applicant under the provisions of Central Excise Act, 1944 in case the entire outstanding dues are not cleared by the applicant as such apprehending arrest, the application in hand has been filed. 3. It is submitted by learned counsel for the applicant that the applicant has all the intention to pay all the outstanding dues which is reflected from the fact that initially a payment of ₹ 3 crores was deposited and there .....

er Sections 397 and 398 read with Section 402 of the Companies Act, 1956, a retired Justice has been appointed as Chairman-cum-Director of the company. Under the circumstances, it was submitted that protection be granted to the applicant. 4. The application is vehemently opposed by learned counsel for the respondent no.2 by submitting that the application is neither maintainable in law nor on facts. An investigation against M/s Sun Nirman Infrastructure Pvt. Ltd registered with Service Tax for p .....

L. Sharma, director of the company and Mr Jatinder Proothi, head finance of the company in their statements under Section 14 of Central Excise Act stated that the applicant is the overall in-charge of the finance and responsible for not depositing the dues towards service tax. The applicant in his statement accepted the contents of the statements made by the aforesaid persons. The action to recover the government dues under Section 87 of the Finance Act, 1994 has been initiated against the compa .....

, the amount of service tax liability is ₹ 1,01,53,662/-. Another affidavit was filed by Mr R.R. Mittal, Superintendent stating therein that pursuant to the letter of the applicant regarding his resignation, the other director was summoned who informed that the applicant filed his resignation with Registrar of Companies without approval of Board of Directors. He is holding the designation of chairman-cum-director of the company and he is the only working director of the company and still h .....

erest is due and out of which the company has paid a sum of ₹ 5,04,83,070/-. 5. It was submitted by learned counsel for the respondent no.2 that the applicant has committed crime against the country. He has collected taxes from the customers but not deposited the same with the government. This is glaring and striking instance of misappropriation of government money. Reference was made to number of authorities for submitting that economic offences are placed at higher pedestal than murder. .....

application is liable to be dismissed. 6. Needless to say, the allegations against the applicant are grave and serious in nature regarding misappropriation of government money. In Ram Narain Popli v CBI 2003 1 AD (Crl.) SC 253 it was observed as under: The cause of the community deserves better treatment at the hands of the Court in the discharge of its judicial functions. The Community or the State is not a persona non grata whose cause may be treated with disdain. The entire community is aggr .....

anded manner without fear of criticism from the quarters which view white collar crimes with a permissive eye, unmindful of the damage; done to the National Economy and National Interest, as was aptly stated in State of Gujarat v. Mohanlal Jitamalji Porwal and Anr., AIR (1987) 1321) 7. Furthermore, a circular bearing number 974/08/2000-CX has been placed on record regarding the arrest and bail under Central Excise Act, 1944. As per this circular, the power to arrest a person needs to be exercise .....